Uploaded by Mauricio Villarreal

Homework 5 - Risk

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250 days with 2or
350 days with 3or
soo day with son cloo so 20
A
B
o
e
i
i
s
i
e
r
y
r
r s n e a lo
i i r i r i
toooo
asoon
o
Height
2 on
z.sn
3 on
3 sn
4 on
projects
Ciaoooxo.zjilzzoooxo.D ilzsoooxo.li
on.ooo
c
So 12sox.zoiicssox.zosiczoox.sn 305
iznoofci.im i
ooi.ooo
iii i
oooo
expected completion
In
time sosdays
21 oo
Npro
i 23.07
citiyo
Yes since I* is greater than the MARR of 15% this is a worthy investment for the company.
In
Expectannua Dan.se
tooooo
37soo
12ooo
6ooo
3ooo
air nowso.rs o.no
Initialcost land
siioo.oooxo.ro
silosooo xo.ru
shooooo xo.roi
400ooo xo.roi
gsso.oooxo.roi
Emeaannua Damage
12040 t
19866
36120
t
4 so
66220
t
tooooo
37soo
12ooo
6ooo
3ooo
The embankment should be built 3m above the roadway.
mm
112,040
57,366
48,120
54,160
69,220
BA
A
B
cox good Cioooo o.org 1 140ooo oooo nooooo oooh
In my opinion Fernando made a logical decision because buying the
420
insurance is an example of risk aversion. He is better off protecting his
stuff than to not want to pay the $130 extra. All things considered you
are worse off not buying the insurance in the case an accident does end
up occurring so it was a logical decision to invest in the insurance.
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